Ideal Bank is a Financial Shopping Mall

Probably, Ukrainians have their own view of what a bank should be. People are different, their requirements and wishes are also different. At the same time, numerous interviews are made, banking specialists try to sum up and generalize their clients’ opinions. As a result, an integral picture may be obtained. What does it look like? Which bank would suit Kievers? We referred this question to Sergiy Kotsupatriy, Deputy Director of Kyiv Regional Directorate of Ukrgasbank JSB (NBU Licence # 123 as of 19.11.2001).

"An ideal bank, - Sergiy Mykhaylovych replied, - should have at least an extensive network of affiliates, one of which would be located not far from the client’s place of residence and be open in suitable time for people. Ukrainians work a lot, and usually postpone their visit to a bank for a day-off. As a rule, if a financial institution is open on a day-off, it has more clients".

Then, choosing a bank, residents of the capital, and not only them, are lead by such indicator as service time and quality. Nobody wants to waste personal time, especially after work or on days off. Giving a short outline of the strategy that many managers pursue, it is as follows: banks have to become some kind of financial shopping malls and offer individuals and legal entities as many services as possible.

Western Standard
I asked Sergiy Mykhaylovych a question: "Are the developments produced by western specialists suitable for Ukraine banks? What useful things is it possible to take from their experience?"
According to Sergiy Kotsupatriy, provision of banking services to clients is getting more and more automated. Special progress in this respect is observed in retail segment that is, however, not surprising, as the transactions made in this area are mostly standard.

Why stand at the operator’s window for hours, if you may perform the required transaction yourself using your plastic card? The chip with the client’s personal data is integrated into the card. The calculation is made by analogy to receiving cash from an ATM. Code and number are entered, payment type is selected from among those shown on the screen, and certain amount from the client’s card is transferred to the account of the enterprise providing public services. This may be a bill for electricity, residential rental, payment for TV antenna etc.

Sergiy Kotsupatriy is convinced that Ukraine should aim at that level of providing services to clients, which is observed in developed western countries. For example, in any branch of many German banks one may pay for public services, transfer money from one account to another, and even place money to a deposit account using special automated systems requiring no assistance of bank employees. Presently, in Ukraine such transactions are usually made with the help of bank employees. This area is very promising, and the majority of Ukrainian banks should choose it.

Which additional services new to Ukraine may be interesting for Kievers?

"One of them, - said Deputy Director of Kyiv Regional Directorate of Ukrgasbank, - is the opportunity to replenish a card account of one person from the card account of another person. At the same time, people may be thousand kilometers far from each other. This is very suitable for family members or relatives, one of which may be on leave or business trip. In this case, setting off on a trip, you shouldn’t have large balance on your card. At the same time, if you need to make a large purchase or if you face large expenses, people you know may remove this inconvenience in several minutes. In most cases, the only condition of such transaction is that both cards should be issued by one and the same bank".

Double Guarantee
Some Kievers often need to go on a business trip, sometimes abroad. What to do, if a need arises to replenish an account during the trip to one of the CIS countries? May Ukrainian banks be helpful in this case?

Answering my question, Sergiy Kotsupatriy observed that today such opportunity already exists. Some Ukrainian banks started sending and effecting payments on transfers for the Bank’s retail clients using CONTACT international money transfer and payment system. This system is one of the leading transfer systems in the territory of CIS and Baltic countries. The system has extensive service outlets network: over 400 banks and financial companies in 79 countries of the world. Only in CIS countries, over 6,500 outlets are located.

Comparing western and national lending systems, Ukrainians and residents of the former USSR envy foreigners, who are granted loans for purchasing residence for 30 years. When will Kievers have an opportunity to receive loans for such a long period?

"This is another condition an ideal bank should comply with, - Sergiy Kotsupatriy said. – The income level of Ukrainians is different. And everyone should be able to choose the term, which would afford to set no limit to current expenses. People need to eat, dress, and bring up children. If loans are repaid in a short time, repayment amounts grow considerably, and not everybody is able to handle. I think that the term for residence lending in Ukraine should be extended to 25 years. The client should have such opportunity. If the client wants to take a loan for a shorter term, they should be free to, it is their right”.

According to Mr. Kotsupatriy, an ideal bank should grant loans to clients secured by property or real estate owned by other people. This means, that if relatives, for example, parents wish to help their children take a loan, their apartment may be a guarantee at the time of lending procedure. In this case, everybody wins. Let us assume that a young family has no residence of its own and no accumulated capital to purchase it. As any loan is to be secured by property, young people have a hard time with taking a loan. However, their parents or relatives own real estate or other property, which may be pledged. So, parents’ help becomes indispensable. Notably, with such scheme, old people bear no additional expenses. They do not have to give their own savings to their children for initial lending installment. Parents keep on living their usual life financially, while their children win a lot with their help: they bought their own residence, and live in it, repaying the loan.

Ukrainian on the Wheels
Speaking about what an ideal bank for Ukrainians should be, Mr. Kotsupatriy also paid attention to automobilists. Many of them cannot imagine their life without their “iron horse”, and some people need a car in their business. Why should a Kiever tear away a part of their assets for initial installment of a loan to purchase a new car? Lending should be without initial expenses, for such Kiever to be in the driver's seat having just insured the car and settled the formalities. 

An ideal bank should help city residents not only financially; it should also save their time by providing the whole range of services. For example, in case of car lending: why should a client go to an insurance company to make insurance? This may be done in one office; an insurance agent should be in the next room, and come to the bank upon request. This will save the client from odd inconveniences and long wanderings around institutions, which are sometimes located in different parts of the city.

A good bank should take care of further "car-based" life of its client. Why not offering them a system of fueling the car using a plastic card? In this case, petroleum is bought now, and paid at the end of the month. At the same time, discount is possible.

It is not a secret that for some reasons, the Bank’s clients lose a considerable amount withdrawing money form accounts. The fact of life is that a person does not know what exactly to expect tomorrow. In most cases, terminating the agreement, a client takes this step involuntarily, not of their own will. Is there any protection mechanism to minimize Kievers’ losses?

"If such need arises, it should be satisfied, - Sergiy Kotsupatriy says. – Many western banks, and now some Ukrainian banks introduce a deposit-related service, when a client does not lose a part of their money terminating an agreement".

Moreover, according to Mr. Kotsupatriy, the bank should help its client even in case it seems to be out of its competence, for example, to keep their peace of mind during their summer vacation. Can a person have a good rest with a light heart, knowing that their house or apartment, and which is the most important, values kept there are left unattended? If the bank relishes its client, it should have safe-deposit boxes. Leaving home for long time, the client should have an opportunity to place their assets in such boxes. Assets may include family jewels, silverware, or just a lot of money. In this case, the bank’s client is 100% insured against troubles related to assets’ theft or disappearance. Even presuming theoretically the possibility of the bank’s destruction, the assets will not disappear, but be given back to their owner.

 To Meet the Client’s Needs
Just like in commerce, there is an implied rule that a buyer is always right, so in banking the following condition must be taken as a rule: a client should always be satisfied. The client should leave happy. Only in this case, they will go to their bank again and recommend it to their relatives and friends.

Many banks (if they wish to gain clients’ trust) are quite able to organize special events and arrange incentives among plastic cards holders. This may include discounts for product purchase in shops using cards.

An ideal bank should treasure its regular client. If a person applies for one and the same service again, they should have right to count on certain bonuses or additions to deposit rates.

According to Sergiy Kotsupatriy, in western banks, and now also in Ukrainian banks, prizes are put to lottery among plastic cards holders. This may include tourist tickets to Europe or, for example, to Egypt.

Listening to Mr. Kotsupatriy, I found myself thinking that I would gladly become a client of a bank providing all of those services. Naturally, I couldn’t help asking: "What in particular has Ukrgasbank adopted?” – “Many services, special events I was speaking about have been provided by our Bank and other leading Ukrainian banks for a long time, - Sergiy Kotsupatriy replied. However, I will be honest, there is nothing ideal in nature, banks included. But the fact is we strive for the ideal".

19.10.2006